HRM Report: Managing and Leading Human Resources at McDonald's

This report examines the critical role of Human Resource Management (HRM) within organizations, using McDonald's as a case study. It begins by outlining the purpose and functions of HRM, emphasizing workforce planning, recruitment, selection, training, and compensation. The report then analyzes the strengths and weaknesses of various recruitment methods, including internal and external sources, followed by a discussion of the benefits of HRM practices for both employees and employers, such as improved working conditions and increased productivity. The importance of employee relations, including equal opportunities and fair treatment, is also addressed, along with the impact of employment legislation on HRM decision-making. The report concludes by illustrating the application of HRM practices in a work-related context, highlighting how these practices contribute to organizational success by fostering a motivated and skilled workforce. Overall, the report underscores the strategic importance of HRM in driving organizational efficiency, employee satisfaction, and ultimately, profitability.

Managing and
leading human
resources

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and functions of HRM and how it is applicable in workforce planning..................1
P2 Strength and weaknesses of different approaches of recruitment and selection....................3
TASK 3............................................................................................................................................4
P3 Benefits of HRM practices for employees and employer......................................................4
P4 Effectiveness of HRM practices in terms of increasing profit and productivity...................5
TASK 3............................................................................................................................................6
P5 Importance of employee relations .........................................................................................6
P6 Key elements of employment legislations and impact on decision making of HRM............7
TASK 4............................................................................................................................................8
P7 Application of human resources management practices in work related context .................8
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................15

INTRODUCTION
In this competitive era, every business organisation is tend towards keeping efficient and
skilled workforce thus to survive for long term. A human resource department is vital component
for companies to maintain employee well being. The main obligations of HR involves
recruitment, selection, payroll, compensation, training, development and so on. Along with this,
a forward thinking HR department comprises to implement effective policies, strategies and
people friendly guidelines. It also serves to make sure that firm's vision, mission, values and
principles keep it to guide towards growth and success. HR managers assess employees'
performance and provide solutions to improve them; it leads to increase organisational efficiency
(Andreeva and Kianto, 2012). While considering the discussion, McDonald's is the chosen
organisation; its a fast food company which was founded in 1940. The worldwide workforce
strength of the company is 250000+ thus to manage them in effective manner, McDonald's HR
department plays a significant role. Apart from this, the report will be described purpose and
functions of HRM applications and workforce planning. There is going to be a discussion upon
strength and weaknesses of various approaches of recruitment and selection. Benefits of HRM
practices for employees and employers are also discussed later. Furthermore, use of HRM
practices and work related context is also discussed later.
TASK 1
P1 Purpose and functions of HRM and how it is applicable in workforce planning
HRM – A systemically managed human resource department provides to an organisation
to ability of meeting business needs by managing most valuable resources. The HR manager of
the company focuses on managing healthy and positive relations between all employees as they
perform in the best possible manner.
Workforce planning – The term workforce planning refers with a process of ensuring
company has current and future access of human capital. Workforce planning comprises to
determine personnel needs and applying cost effective methods in order to recruit and retain staff
members. Along with this, there is a constant analysis of recognising workforce effectiveness
through diverse measure, such as – training and development initiatives; it lead employees will
remain efficient (App, Merk and Büttgen, 2012). In McDonald's workforce planning is done in
strategic manner as it is aligned with company's mission, vision, goals and objectives. In this
sense, it can be said that strategic workforce planning plays an important role in succession
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planning so as to evaluate skills and knowledge level of individuals. It can be an imperative
activity that engages employees' with organisation and also can be adjusted as per the size or
maturity of the firm.
Purpose of HRM
 Human resource management helps to realise competence as well as drive efficiency of
staff members; its main focus is on accomplish organisational goals by defining them to
all employees.
 Another purpose of HRM is to implement coordination and harmonious functionality
among several departments. Here resources are organised by considering business goals
and objectives. HR manager of McDonald's focuses on optimal and functional utilisation
of human resources (Bach and Kessler, 2011). Human resource managers also ensure about legal, ethical and social issues as they are
suitably dealt within organisation. HR compliantly coped all requirements of employees
and try to fulfil them. It must also consider societal ethics as well as social
responsibilities.
Functions of HRM
Recruitment and selection – It is one of the challenging task of human resource manager
cause a huge attention and resources are required to attain, employ and retain prospective staff
members. Recruitment is process of determining and evaluating large pool of applicants who
have applied for a vacant position whereas selection helps to chose best candidates among all
variables. The function of recruitment and selection involve several aspects, i.e. preparing a job
description, publishing the job posting, sourcing of prospective applicants, schedule interviews,
salary negotiation and create a job offer.
Training and development – It is most important duty of HR manager is to train each
individual for improving their technical skills as they can perform specific tasks or activities in a
convenient manner. Training and development program also supports to get higher jobs in an
organisation. Along with this, personnel development is essential so as to keep employees up to
date from all respective areas of the firm (Banker, Byzalov and Chen, 2013). This HRM function
helps employees to understand the process and make it easy for them to get on jobs. Results of
development must be monitored and evaluated for further aspects.
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Compensation and benefits – Any company can attain its vision and mission it is able to
acclimatize the new ways of giving benefits to workforce. HR department of McDonald's is
given certain benefits to its employees, such as - extended vacation, maternal/paternal leave,
working hour flexibility, educational reimbursement for children and so on. Apart from this,
HRM also provides necessary compensations or remuneration to its employees thus to motivate
or inspire them work efficiently.
P2 Strength and weaknesses of different approaches of recruitment and selection
There are two main approaches of recruitment & selection through which can recruit an
efficient manpower for accomplishing its operations and business practices. Below is defined
approaches of Recruitment and selection: -
Internal sources of recruitment & selection
 Transfer & promotions between current employees is an efficient source of recruitment &
selection. It is cheaper method rather than going outside to recruit. In order to make
effective promotion, there is required job positing, identification of skills and personal
records of employees so as to take imperative decisions (Batt and Colvin, 2011). Employee referrals – In this employees who have strong prospects with their families and
friends can refer individuals who are capable to work in that organisation.
Strength and weaknesses of internal sources
Strength Weaknesses
Foreknowledge of employees abilities and
disabilities.
More accurate view of candidate's skills
Less training and orientation required
Failed applicants become discontented.
Inbreeding of status quo.
External sources of recruitment & selection
 Advertisements – It is one of the popular method to attain large group of applicants for
vacant position within organisation. Ads can be given at newspapers and official website
of the firm; it defines job roles, responsibilities and required skills for the profile. Employment exchanges have been set up across the nation in deference to the provision
of employment exchanges Act, 1959. It creates a link between employers and prospective
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employees in terms of recruiting technical workers for doing specific tasks (Chan and
Mak, 2012).
Strength and weaknesses of external sources
Strength Weaknesses
Outside people bring new ideas
People have wide range of experience
Recruiting fresh talent with innovative ideas
More expensive process in all perspectives
Individuals can take time of understand
organisational cultural.
TASK 3
P3 Benefits of HRM practices for employees and employer
HRM practices has a key role in carrying out people for a job role including enlisting,
screening, personnel development, rewarding and appraising. It helps management to assess
employees' skills and competencies so as to initiate actions in order to full their requirements.
Acquisition and implementation of HRM practices is beneficial for whole organisation, i.e.
employee and employer which is described as under: -
Employers Employees
In context of employers, HRM practices help
to manage entire workforce in systematic
manner by evaluating their needs and wants
and tries to fulfil them properly (Chuang,
Chen and Chuang, 2013).
HRM practices supports to provide safe and
secure working environment to employees as
HR manager of firm future risks which can
affect working activities and performance level
of staff members
HRM practices discover the relation which
existed between workplace climate and
perceptions of organisational performance. It
helps in creating a strong and stress free
cultural within business organisations.
The main objective of such practices is to give
value to employee participations,
accountability and empowerment which aids to
perform much better and accomplish
organisational outcomes in a certain time
period.
Due to advent of technology, the aura of HRM Many firms implement HRM practices so as to
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is also improving, firms are using new and
innovative methods for recruitment, training
and performance management. All this can
make easier the process of accomplishing HR
roles and responsibilities and also beneficial
for whole organisation.
improve performance level of employees; as
the concept of performance management relies
upon assessing individuals' capabilities and
improve them by regulating necessary
measures (D'Cruz and Noronha, 2011).
HR professional helps the development of
organisational culture and climate in which
employees have the competency, concern and
commitment to serve customers well; it
increases buyers' trust and loyalty towards a
company that results enhancement of sales.
HRM practices focused on generating
employee participation which also improves
decision making process of the firm.
P4 Effectiveness of HRM practices in terms of increasing profit and productivity
HRM practices has a vast impact on profit and production level of organisations in direct
and indirect manner. The main objective of the company is to attain and retain people at
workplace for long term thus to build an experienced and well skilled so as to gain high
competitive edge (Guest, 2011). For further discussion on effectiveness of HRM practices below
is defined certain prospectus, such as -
Performance management – HRM practices supports to manage performance level of
employees as it prime motive is to strength employees' efficiency thus to attain company's goals
and objectives. Performance management is a way of improving sales and profitability of the
company in terms of enhancing effectiveness of staff members. It is essential for HR managers
of McDonald's to organise performance management programmes, i.e. training and learning
events and acquire various tools which assess individual's performance. All this can generate
higher production outputs and raise sales of the company
Employee retention - In this present scenario, it is quite harder for companies to recruit
and sustain well skilled staff members due to raising market competition. As such, its an
undeniable priority of HRM to attain and retain right talent. Here, must be ensured that there is
catered environment of respect to employees because employees' will be retained only if they
will get free environment to develop their skills and knowledge (Gupta and Kumar, 2012).
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Therefore, well skilled and qualified staff members helps to perform in better manner it results
enhancement of sales and profitability of the company.
Equal opportunity – HRM practices are applied in order to deliver equal opportunities to
all employees as they feel inspire and motivate. On the other hand, equal opportunities are also
related with giving equal remuneration to all employees who works at same level or post. In
addition to this, fair human resource practices are tend towards treating employees in equal
manner specially at the time of recruitment and selection. HR managers also takes decisions on
the basis of experience, capabilities and technical skills of of employees and considering equality
while training and development sessions between male and female employees. It results
increasing employee satisfaction which turns out in enhancing productivity and profits of the
firm.
TASK 3
P5 Importance of employee relations
Business organisations cannot perform individually, it require to work with certain
workforce that is able to know how to accomplish working activities or tasks. Thus, success or
failure of a firm is totally relies upon its promotional for labour force. In this manner, corporate
associations should focus on attaining and retaining people; for this they develop good relations
with staff members. Therefore, the term employee relations is a key factor in growth and
enhancement of every business organisation (Hernandez and Roberts, 2012). Managing strong
relations reaps several benefits to McDonald's; it results high profit margins. Following is
defined significance of employee relationship in respect of influencing decision-making of HRM
practices: Creating a healthy and positive working environment – The prime benefit of employee
relations is to develop a healthy and strong working environment where individuals are
free to work, talk and interact. It is signifies for Human resource department of the
company to create a flexible atmosphere at workplace by reducing their workload,
organising several activities or events and so on. It increases workers' enthusiasm and
interest to work in well being manner, this led boosting up performance level of
McDonald's. But if business associations would failed to foster such atmosphere, it
creates uncertainty in respect of employee turnover (Kazlauskaite, Buciuniene and
Turauskas, 2011).
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 Increasing productivity and profitability – Healthy employee relations increases
performance level and productivity cause if employees are getting an independent
platform; they will use their skills and knowledge in better manner. Apart from this,
having good employee-employer relations helps staff members to resolve all queries or
problems which are occurring while doing any task or activity. This guidance of
managers automatically enhance performance and productivity of the organisation which
lead high profit margins and sales revenues. Employee loyalty – In McDonald's staff members comprised in all business activities
which provides them maximum job satisfaction. Satisfy and happy employees are highly
committed towards performing working activities or processes. Loyal employees plays a
key role of ambassadors for the organisation and assist to promote its vision, mission as
well as brand value (Kehoe and Wright, 2013). Innovation – There is a close relationship among innovation and employee relationship
cause if staff members are allowed to worked together with senior managers there is
transformation of new and innovative ideas which is related with business growth and
viability. For example- in McDonald's employee relations assists to generate effective
and value added products.
Impact of employee relations on decision-making process of the company
Having strong and healthy positive employee relations plays a vital role decision making
process of the company as it builds individuals' trust or faith upon managers. Through which
they they can freely share their ideas or thoughts regrading making certain improvements within
an organisation. Along with this, it also help management to align task or activity to employees
and they will happily do them. It increases free flow of communication within organisations.
P6 Key elements of employment legislations and impact on decision making of HRM
Employment legislations provides a framework to an organisation it signifies to which
employees and employers are obligated. Employment laws are made up with federal and state
laws; it protect discrimination and work disruptions cause of conflicts as well as also promote
health and safety at workplace (Martin and Smith, 2011). Laws and regulations which are come
under employment legislation, such are as follow: - Employment rights act 1996 – The act was passed to codify current laws on individual's
rights in UK labour law. Employment right act protect workers' rights and duties at
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workplace as it ensure about health and safety, security and job needs of an individual.
The law also ensure that main terms of employee an employers should be recorded and in
written form. Along with this, ERA has set out to protect employees in different
situations, like – dismissal, unfair dismissal, redundancy and paternal leave. In 1997, UK
government proposed an amendment to strengthen employees' voice, i.e. requesting
flexible working time. Sex discrimination act – It act was passed in 1984 in order to diminish discrimination
between employees on the basis of gender, gender identity, relationship status etc. In
many business associations, there are two types of discriminations, such as – direct or
indirect. In which direct discrimination occurs while managers treats female staff less
favourably in comparison with men whereas indirect discrimination is when employers
provides more opportunities or preference to male candidates at the time recruitment
(Muttarak and et. al., 2013). Therefore, sex discrimination act focus to reduce differences
which are being made while employment, training, harassment and delivering products
and services. Working time regulation act, 1998 – This act applies upon all staff members and
undertaken minimum rest breaks while working hours. Working time regulation act also
tends that an important right to provide annual leave, i.e. minimum 28 days. It also gives
a right of minimum period 20 minutes rest in a shift of lasting over 6 hours.
 Transfer of undertakings (protection of employment) Regulation 2006 – This act stated
that employees' job could be affected on the ground of undignified principles, i.e. poor
economic conditions and due to any technical issues.
TASK 4
P7 Application of human resources management practices in work related context
In a multinational business associations, there are several number of employees are
worked together with an aim of accomplishing common goals and objectives. Through this,
firms will enable to run all business activities or operations in the best possible manner and it
also ensure their sustainability. Therefore, it is a HR manager who is responsible for hiring well
skilled talented people at marketplace. Recruitment and selection, training and development,
performance management, compensation and benefits and so on. In this manner, Human
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resource department needs to execute best methodologies in order to fulfil workforce
requirements.
Job analysis – It is a process of determining duties and requirements of a specific job; it
also provides a relevant importance of duties which are given in that job. Job analysis is a
process where judgements are created through gathered data. In simple words, it is an activity of
getting entire information about a specific job like what a worker do, why he does it, how it can
be done and skills, knowledge, relation with other operations and so on (Obeidat, 2012).
Job specification – It defines skills, abilities and knowledge which are required to do a
particular job or task. Basically, job specification covers several elements like- managerial
experience, working experience, qualification etc. that supports firm to attain its goals and
objectives. Job specification supports in recruitment & selection as well as assess performance
level of staff members the provide them promotions & appraisals.
Job specification of HR manager: -
Job specification
Job Details:
Post: Finance manager for McDonald's
Department: Accounting & Finance department
Reporting to : Sr. Finance manager
Accountable to: Head of financial management and planning
Management responsibility – Assisting finance executives.
Job Purpose -
Finance managers of the company are liable for improving and managing financial standards of
the firm. The candidate will help to determine financial strategy, policies and preparing funding
requirements within organisation.
Job description: -
 Provide financial support to business units.
 Maintain financial oversight and make recommendations on financial issues to assigned
business units.
 Coordinate and execute monthly/annually forecast analysis process with assigned
business units.
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 Proactively resolve MIS issues impacting performance and review impact with business
units and divisional financial officers.
 Lead or present financial analysis and results to business organisations.
Curriculum Vitae – HR manager of the firm get large pool of applications for a
particular post of job role. They evaluate CV of each individual and match it with job
requirements thus to select the best one among all other alternatives. The entire procedure called
screening thus to call appropriate candidates for interview. By considering CV, human resource
managers can easily recognise personality traits of an individual and call them for interview.
Curriculum Vitae
Name - ABC
Email Id – [e-mail]
Contact number -000000233570
Address – M23/45, D block, London street.
Summary – Skilled financial manager adept at increasing work process efficiency and
profitability through functional and technical assessment. Able to give efficient financial advise
to large and small associations and individuals as well. Areas of expertise include asset
allocation, investment strategy and risk management.
Highlights -
 Strategic and financial planning expert
 Accurate forecasting
 Process implementation
 Data trending
 Business performance improvement
 staff leadership and development
 Proficient in SAP Customer relations.
Educational qualification -
Bachelor degree of Commerce in Accounting (2006) - London University.
Experience -
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Finance manager – 02/2011 – current
Fidelia Accounting – England
Key skills and competencies: -
 Worked in Oracle financial and functional full cycles implementation experience of
ERP application including review of business process. System development in Multi
Org-structure and post implementation support.
 Employed advanced deals analysis, including hands on negotiable with potential
investors.
 Analysed market trends and surve4sy and used information to stimulate annual budgets
and revenue growth.
 Secured loans for high level management spending purposes.
Declaration: - I hereby, entire information provided by me which is mentioned in this document
are correct.
Date:
Place:
Documentation of preparatory notes to selected candidates for interviews -
Before the interview
So many things should be done before processing an interview as its an analytical process rather
than mental. Usually, preparing an interview is quite difficult as comparison with actual
interview. The HR manager of firm collects all documents, i.e. what questions will be aspects,
behavioural attributes, what are the main personality traits and so many things. Following are
the activities which fulfil by HR manager, such as -
Prepare questions which are going to be asked from interviewee which supports to match all job
requirements as per their personality traits.
 Decide location and time of interview
 Call all candidates who are invited for interviewed and again confirmed with them.
Provide venue and time details to people as well as necessary documents which are
required in proceeding an interview.
 Grant permission from hire authorities for organising interview sessions and also consult
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with associated department for which they are hiring. Coordinate all penal members and give them entire information which are related with
interview.
During the interview
 Greet individuals in friendly manner and feel them relax.
 Give certain time to candidates as they can prepare themselves for interview and
perform well being.
 Ask questions related with background and get personal information of applicant At the end of interview, give them positive feedback.
After interview
 Selecting higher rating and experienced employees and also make alternative portfolios
of at least 3 to 4 people.
 Check and investigate all overall provided by the candidates is true and also check their
medical history as well to determine that whether or not he or she will suitable for the
organisation.
 After completing background clarification process, screening finalist/finalists.
 Prepare an offer letter and provide selected candidate through calling, mailing and
posting thus to inform them about their selection.
Justification of final selection – In recruiting process of McDonald's, management has
hired ABC candidate; the selection criteria of the company is based upon employees must meet
all job requirements, he or she has higher educational qualification. Here, ABC has great
working of more than 5 years and he also participated in different sports activities as a volunteer.
He has a good command over finance sector and strong leadership skills help the person handle,
cope, guide, supervise and evaluating performance of a team thus to take imperative business
decisions. Along with this, the selected individual has good market knowledge, analytical and
research capabilities which helps him to manage financial position of the company. As the
experience of the person will aids McDonald's to attain its goals and objectives in the best
possible manner.
Job offer letter: -
Job offer letter
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Date
Name – Mr. ABC
Hello ABC,
I would like to inform you are selected in McDonald's as a financial manager; I am pleased to
giving you offer letter. As we discussed in past interview sessions you will posted in south
region outlets of the company and directly report to its Branch manager. You told us that you
will have to serve notice period of 15 days, after this you can join us.
After induction programs you will be liable to perform all of your duties and responsibilities.
As you already aware about rules and regulations of the company. I hope you will achieve
career goals by working with us.
If this job letter is accepted by you the sign and send this copy on our personal mail id in next 5
days. I feel pleased to have you in our organisation.
Sincerely
HR manager
(McDonald's)
I accept firm job offer letter of employment as well as acknowledged receiving current workers
handbook. I am ready to join on 15th July 2018.
Signature:
Print name:
Date:
Place:
CONCLUSION
As per the above discussion, it get concluded that HRM plays a crucial role in growth and
success of every business organisation; it helps firm to manage entire workforce in a systematic
manner thus to attain organisation's goals and objective. The report has stated that an efficient
workforce planning is liable for increasing productivity and performance level of staff members.
There are various approaches of recruitment and selection, such as – transfer, promotion,
employee referrals, advertisements etc. Apart from this, HRM practices help to employers to
13

improve organisational productivity whereas it supports employees to provide them healthy and
safe working environment. HR manager of McDonald's implement several HRM practices in
order to attain and retain employees for long term period. It is necessary for human resource
department of the company to manage strong employee relations as they work cooperatively
which contribute in raising production level of the firm.
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